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Friday, October 9, 2009

Bravo For Hampton Inn Property In Buckhead

The former Rio Bravo in Buckhead, having sat empty for years, may finally become something new. Well placed sources indicate that Hampton Inn is already paying on a lease for the property. With demolition of the 10,000 sq. ft former Rio Bravo building set to take place in the next few weeks, construction on the new property could begin by year's end with the hotel to be completed by Fall 2010. Set on .94 acres at the corner of Irby and Roswell Roads, the site sees more than 22,000 cars per day. Research indicates that the asking price for the ground lease was $42,500 per month, so Hampton must be pretty serious about the space. Interestingly enough, Hampton Inn already has a location in Buckhead at 3398 Piedmont Road, adjacent to the Disco Kroger (Fresh Fare) shopping center. Seeing as how Ben Carter's "Streets of Buckhead" has been stalled indefinitely, and all of the high-end hotels have pulled out of the project, Hampton Inn may see this as an opportunity to fill a need for more moderately priced accommodations in the popular Buckhead community. While Rio Bravo closed years ago, places like One Star Ranch, Five Paces Inn and Rio Grande have made the streets in and around Irby and East Andrews a destination for many Buckhead revelers. ToNeTo Atlanta

Considering occupancy rates still blow even at the majority of lower-end properties in the area, they are rolling the dice. Could be many years to recoup the investment but perhaps they are looking 3 to 5 years out to turn any profit at all. Long-term view maybe.

If this is true they are paying that much a month, I don't know whats worse. Having a Hampton Inn there or an abandoned Hampton Inn there when they realize it won't work. It will be interesting to see how it works, doesnt seem like enough land to build a hotel with parking.